P4. Flat-rate schemes

- Flat rate scheme is derogation to be applied only only to extent necessary to achieve objective

"[37] It must be recalled that the common flat-rate scheme for farmers is a scheme which derogates from and is an exception to the general scheme of the Sixth Directive and the VAT Directive and which must therefore be applied only to the extent necessary to achieve its objective (judgments of 15 July 2004, Harbs, C‑321/02, EU:C:2004:447, paragraph 27; of 26 May 2005, Stadt Sundern, C‑43/04, EU:C:2005:324, paragraph 27; and of 8 March 2012, Commission v Portugal, C‑524/10, EU:C:2012:129, paragraph 49)." (Nigl C-340/15)

- Objectives: simplification and offsetting input tax to avoid administrative difficulties

"[38] Among the two objectives of that scheme is that relating to the need for simplification, which must be reconciled with the objective of offsetting the input VAT borne by farmers (see, to that effect, judgments of 26 May 2005, Stadt Sundern, C‑43/04, EU:C:2005:324, paragraph 28, and of 8 March 2012, Commission v Portugal, C‑524/10, EU:C:2012:129, paragraph 50).

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[45] In that situation, the fact that the application of the flat-rate scheme is nevertheless capable of reducing the administrative costs associated with the application of the VAT scheme cannot, however, be taken into account inasmuch as the EU legislature introduced the flat-rate scheme for the sole benefit of farmers for whom the application of the normal VAT arrangements or simplified scheme is likely to give rise to difficulties, particularly difficulties of an administrative nature." (Nigl C-340/15)

- Size and legal form not sufficient grounds to rule out administrative difficulties of normal arrangements

"[38] However, the circumstance, put forward by the referring court, that a limited company, an association of persons made up of the members of multiple civil-law partnerships or an association of persons made up of that limited company and of members of those civil-law partnerships could not be subject to the common flat-rate scheme for farmers, on account of its size or its legal form, cannot have a bearing on the eligibility of those civil-law partnerships for that scheme, since such a circumstance does not, by itself, prove that the application of the normal arrangements or the simplified scheme would not present administrative difficulties for those partnerships.

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[44] It would, however, be otherwise if civil-law partnerships, such as those at issue in the main proceedings, were, owing to their links with a limited company or an association, such as those mentioned in paragraph 36 above, materially capable of assuming the administrative burden of the tasks arising from the application of the normal arrangements or the simplified scheme, this being a matter for the referring court to verify." (Nigl C-340/15)